Elon Musk has not lost the salary bonus that agreed with Tesla in 2018. Before the refusal of justice to grant it, he has made a determination: change the law to give him reason. His lawyers are writing a proposal for bill that will change the rules of the game for companies in Delaware and compensation to their managers.
If a law does not prove you right, change it. The law firm that represents Elon Musk and Tesla in their salary dispute with the company’s investors has been writing a bill aimed at changing corporate legislation in Delaware, as confirmed by the firm a CNBC. However, and despite the fact that the bill stops tailored to the case of Elon Musk, the buffet claims not to act on behalf of any specific client.
“The statutory changes are necessary to restore the basic principles that have been the distinctive seal of Delaware for more than a century and ensure that Delaware remains the preeminent jurisdiction for incorporation,” said Lisa Schmidt, president of the law firm in statements to statements to the North American medium.
Salary bonds do not touch. The bill that is proposed seeks to modify Title 8 of the Delaware Code related to the fiduciary duty of executives and members of the Board of Directors that collects the General Corporation Law.
The main approach of the proposal is to limit the demands related to executive compensation packages, as with the billionaire bonus that Elon Musk agreed with Tesla. This law proposal comes at a critical moment, since Musk faces the appeal of trial in the state of Delaware, where justice has already twice denied the payment of that bonus for considering it an “unfathomable and unfair sum.”
Ready for vote. The bill written by the firm Richards, Layton & Finger that represents Musk and Tesla, has already been presented at the General Assembly of Delaware. It must now be voted in the two state chambers, and ratified by Democratic governor of Delaware, Matt Meyer.
Brian Quinn, a corporate law professor at Boston College, assured CNBC that this proposal has not gone through the usual channels of the bills, which for decades have been debated and written in the Corporate Law Council of the State Bar Association of Delaware, not in a private law firm.
Doubts about its retroactive effect. State senator Bryan Towsend, assured ABC News that the effect of the new law “is not retroactive and would not affect the litigation related to the Elon Musk compensation package in Tesla.”
Sarath Sanga, professor of corporate law at Yale University, does not coincide with this diagnosis of retroactivity and assured that: “It is possible. There is nothing in the law that demands it and there is nothing that prevents it.” Ann Lipton, a law professor at the University of Tulane, agreed with Sanga, noting that “this sends a strong signal to the Supreme Court of Delaware that we want this to interpret this to return to Elon his salary.”
Brian Quinn also aligns with the opinion of his two colleagues in Yale and Tulane. “It is totally possible that the court revokes the opinion of the trial for reasons not related to this amendment and the Salary Package of Elon Musk is restored.”
The new standard leaves shareholders unprotected. “The true role of corporate law is to protect minority investors. With this bill, the legislature is saying: ‘Do you know what? You have to protect them less,” explained Quinn to CNBC.
Senator Elizabeth Warren, a higher rank member of the Senate Banking Committee, described the new bill as the “Musk’s last plan to cheat the US people and enrich themselves and their multimillion -dollar companions. Musk wants to write their own laws To snatch tens of billions of dollars from Tesla’s shareholders, after the courts said they could not do it, ” The senator declared for Massachusetts.
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Imagen | Flickr (Steve Jurvetson), Pexels (Towfiqui Barbhuiya)
